TIDMPOW
RNS Number : 3535D
Power Metal Resources PLC
21 June 2023
21 June 2023
Power Metal Resources PLC
("Power Metal" or the "Company")
Key Uranium Exploration and Corporate Developments
Power Metal Resources PLC (LON:POW) the London listed
exploration company with a global project portfolio, announces key
developments to its uranium ("U") business, which covers a combined
1,005km(2) across 17 properties (collectively the "Uranium
Portfolio") in and around the prolific Athabasca Basin in
Saskatchewan, Canada.
Highlights
-- 2023 exploration campaign planning complete (as outlined
below), representing the largest ever uranium focussed exploration
programme carried out by Power Metal across its Uranium Portfolio,
which includes work on at least 10 of the 17 properties.
-- Acquisition of the Perch River Uranium project ("Perch
River"), which covers an area of 9.41km(2) and is entirely within
the prolific Athabasca Basin.
-- Planned listing of Uranium Energy Exploration ("UEE") to be expedited.
Sean Wade, Chief Executive Officer of Power Metal Resources plc,
commented:
"I am pleased to be able to make this important announcement to
demonstrate the value we expect to deliver to shareholders through
the exploration of our uranium portfolio. This will be the
Company's largest uranium focussed exploration programme to date,
coming at a time when investor attention is increasingly focussed
on the commodity and its upside potential as a clean energy
alternative fuel.
The purpose of the exploration programme is to carry out a
variety of geophysical and ground-based surveys in order to begin
proving up drill-ready targets. The results are expected to come in
the second and early third quarter of this year, with the intention
of having a well-defined picture of the opportunity by Q4 of this
year.
The recent addition of the Perch River Project was a strategic
move, increasing the Company's overall footprint in and around the
Athabasca Basin, and enhancing what we consider to be a globally
significant package of uranium licences.
I am also pleased to report that the listing of Uranium Energy
Exploration, initially reported in September 2022 into which Power
Metal has conditionally disposed the Reitenbach and E-12
properties,(1,2) will now be expedited in order to meet investor
demand for pure-play exposure to uranium exploration in this
region."
2023 EXPLORATION CAMPAIGN
Power Metal's technical team has designed the 2023 exploration
campaign which will be carried out by Power Metal in conjunction
with various Canada-based geophysical and field contractors.
This programme represents the largest field campaign undertaken
by the Company to date on its northern Saskatchewan uranium
focussed properties, and represents an important commitment to the
Company's uranium business going forward.
Further 2023 campaign-specific details are outlined below. The
various programmes are planned to be carried out between June and
September.
Tait Hill
Tait Hill is located 30km north of the Athabasca Basin and is
considered by the Company to be highly prospective for intrusive-
and pegmatite-hosted uranium mineralisation. The Mullis Lake Target
discovered by Power Metal during the 2022 exploration campaign, and
detailed in a RNS announced on 2 December 2022(3) , has strong
geological similarities to the Rössing uranium deposit located in
Namibia. Exploration over Tait Hill conducted by Saskatchewan
Mining Development Corporation (SMDC) in 1977 returned exceedingly
high soil results (up to 13,200 ppm or 1.3% U) and lake sediment
results (99.8(th) percentile) from the centre of the project. This
central area has received very minimal follow up exploration.
Work completed by Power Metal in 2021 and 2022 returned up to
825 parts per million ("ppm") U from a brecciated pegmatite dyke at
the Mullis Lake Target and up to 3,986 ppm U from a pegmatite in
the north of the project.
In order to advance the project during the 2023 exploration
campaign, Power Metal plans to complete follow up geochemical
(soil) sampling programme and detailed prospecting over the central
part of the project as well as at the Mullis Lake target, with the
ultimate goal of proving up drill ready targets.
Badger Lake
Located along the Athabasca Basin's southern edge, the
16.71km(2) Badger Lake project is considered by the Company to be
prospective for sandstone and basement-hosted unconformity-related
uranium mineralisation.
In 2000 a low-resolution electromagnetic ("EM") geophysics
survey flown by a previous claim holder, highlighted a significant
conductor within the centre of the project. As a result, Power
Metal plans to acquire higher-resolution modern data via a drone EM
(unmanned aerial vehicle or UAV) survey to enable effective
analysis and definition of drill targets for future programmes.
Durrant Lake
Durrant Lake is located within the eastern part of the Athabasca
Basin approximately 37km from the basin edge. The project is
surrounded by major uranium explorers and operators including
Cameco Corporation, Denison Mines Corp and ISO Energy Limited.
A historical survey completed over Durrant Lake by previous
operators identified multiple occurrences of elevated helium
("He")-in-lake water results, which may offer a secondary proxy to
potential uranium mineralisation with helium - a daughter product
of the radioactive decay of uranium.
Geophysical work carried out between 1987 and 2000 identified
multiple northeast trending Very Low Frequency ("VLF") conductors,
which are often inferred to represent faults and/or shear
structures. In addition, EM anomalies in the north and south of the
project are coincident with elevated He-in-lake results
representing compelling targets for unconformity-related uranium
mineralisation.
The various geophysical anomalies were identified several
decades ago and, as a result, Power Metal plans to conduct a modern
helicopter-borne passive EM survey over the entirety of the
project, to define drill targets for future work programmes.
Kerneghan
Kerneghan is located in the east of the Athabasca Basin, around
14km from the basin edge. The project is surrounded by major
operators including ISO Energy Limited, Standard Uranium Ltd and
Orano SA.
To date, no detailed geophysical data has been collected over
Kerneghan, with the only data currently available derived from the
Saskatchewan Geological Survey. Therefore, acquiring high-quality
geophysical data will allow Power to determine and define drill
targets for future work programmes.
As with Durrant Lake, the Company plans to complete a helicopter
borne passive EM survey at Kerneghan.
Soaring Bay
Located 125km southwest of the Athabasca Basin, Soaring Bay is
centred around multiple Saskatchewan Mineral Deposit Index ("SMDI")
points as well as several strongly elevated U-in-lake sediment
results collected as part of a government conducted survey.
Historical work completed over Soaring Bay identified anomalous
Radon(222) isotope results located along a prominent 700 m-long
structural lineament, with multiple coincident U-in-lake sediment
anomalies as well as sustained radiometric anomalies along the
fault. In the southeast of the project, a radioactive pegmatite was
identified, but never assayed.
Power Metal intends to undertake a soil/prospecting programme to
further test the exciting previously identified Radon(222) anomaly
to help determine the nature and prospectivity of this significant
feature. Part of this programme will also include prospecting of
the radioactive pegmatite to the southeast of the project.
E-12(1)
E-12 is located 12km southeast of the Athabasca Basin and is
intersected by Provincial Highway 914, providing ideal exploration
access. We believe the project's proximity to the edge of the
Athabasca Basin makes it prospective for unconformity-related
uranium mineralisation.
Historical data over the project collated by Power Metal has
highlighted the presence of multiple uraniferous boulder trains,
and superficial sediments (soils and gravels) with elevated
radioactivity. However, there is a very limited understanding of
the sub-surface geology and precise location of EM conductors -
which are key targets when exploring for unconformity-related
uranium deposits.
As a result, Power Metal is in the process of commissioning a
drone-based EM survey across the project, with a planned flight
line spacing of 100m flown in a northwest-southeast orientation. A
coarse government-flown airborne EM survey identified multiple
low-resolution conductors across the project, and the planned
high-resolution survey will allow Power Metal to map the precise
location, extent and character of the known EM conductors within
E-12, allowing for targeted follow-up exploration.
Work undertaken at E-12 will be paid for by Power Metal and
provided as a loan to UEE recoverable on the successful listing of
UEE within the London markets.
Reitenbach(2)
Reitenbach is located approximately 130km east of the Athabasca
Basin and is considered by the Company to be highly prospective for
intrusive and pegmatite-hosted uranium mineralisation. The project
is centred on multiple underexplored geophysical and geochemical
anomalies.
The project hosts exceedingly high U-in-lake sediment results up
to 508 ppm U - which represents the 99.99(th) percentile U-in-lake
sediments from the entire Geological Survey of Canada Saskatchewan
lake sediment database. Due to extension cover, previous explorers
were unable to find a mineralised outcrop source which could
sufficiently explain the exceptionally high U-in-lake sediment
results found over a large area within Reitenbach.
The vast majority of the Reitenbach has been subject to no
modern geophysical surveys and as a result, Power Metal has
commissioned Dias Geophysical Limited ("DIAS") to complete a
helicopter-borne high-resolution 'QMAGT' full tensor magnetic
gradiometry and radiometric survey over the project with 1,000
line-km planned. The survey is expected to commence by the end of
June 2023.
In addition, DIAS will also complete the processing, analysis
and interpretations for the data acquired. As the project is mostly
covered by thin vegetation the combined magnetic and radiometric
results will allow for the detailed mapping of important geological
and structural features with the ultimate goal of discovering a
considerable mineralised bedrock source.
Work undertaken at Reitenbach will be paid for by Power Metal
and provided as a loan to UEE recoverable on the successful listing
of UEE within the London markets.
Cook Lake
Cook Lake is located 85km southeast of the Athabasca Basin and
is considered by the Company to be prospective for basement-hosted
unconformity-related uranium, alongside intrusion- and
pegmatite-hosted uranium mineralisation. At Cook Lake multiple
uranium-enriched boulder trains have been identified as well as
several radiometric and elevated U-in-lake sediment anomalies.
The most recent geophysical survey completed over Cook Lake was
in the late 1970s which identified several EM conductors. Updating
these results with modern survey methods will allow for improved
identification and resolution of these EM conductors.
As a result, Power Metal is in the process of commissioning a
drone-based EM survey to be flown across the project with a planned
flight line spacing of 150-200m flown in a northwest-southeast
direction. This survey will provide valuable inputs to allow Power
Metal to plan further work on the project.
Clearwater
Power Metal has completed two field programmes on Clearwater,
overseeing the collection of multiple samples with 'off scale'
(i.e. >9,999 counts per second or "CPS") radioactivity, which
returned results of up to 1,120 ppm tri-uranium oxtoxide ("U(3)
O(8) ")(") . Additionally, the project hosts six SMDI occurrences
and multiple anomalous U-in-lake sediment results, all of which
highlight Clearwater's prospectivity.
The main exploration target at Clearwater is for
Beaverlodge-style uranium mineralisation, which is associated with
faults and fractures therefore to best refine targeting on
Clearwater a strong understanding of the structural geology of the
project is vital. To date, no modern geophysics has flown and Power
Metal is in the process of commissioning a drone-based EM survey.
This modern geophysical survey will allow for detailed mapping of
prospective fault zones ready for further detailed field
investigation in the future.
ACQUISITION OF PERCH RIVER
Mineral Claim Staking Process of Perch River
The mineral claims constituting the Perch River Uranium Project
(Figure 1) was acquired directly through the Mineral Administration
Registry Saskatchewan ("MARS") electronic registry system.
Where a previous claim owner is unable to satisfy the claim
maintenance requirements, that ground is reopened to third-party
staking at a set time each month. Select reopening's are often
highly competitive with many parties attempting to acquire the
newly available land.
The total cost of the 39.41 km(2) staking was Canadian
$2,364.60. The newly staked licences come with a two-year term with
no minimum spend requirement, which can then be extended for
subsequent years by spending a minimum of Canadian $59,115 per
annum.
Perch River Geology
Perch River is located less than 10km from the northern
Athabasca basin edge and is therefore Considered by the Company to
be prospective for both basement- and sandstone-hosted
unconformity-related uranium deposits.
The project is covered by Athabasca Sandstone to an estimated
depth of between 50 and 200m which is in contact with crystalline
basement of the Mudjatik Domain. A major fault zone, the 'Font du
Lac', crosses the project in a north-south orientation and 'splays'
(breaks and rejoins) in the centre of the project. Such structures
have been interpreted as providing fluid pathways to enable the
generation of unconformity related uranium deposits elsewhere in
the Athabasca Basin, and therefore represents a significant target
at Perch River.
At the apex of the fault splay, and to the northeast of the
fault, multiple gravity lows, which may be indicating an area of
hydrothermal alteration are present, further highlighting the
prospectivity for unconformity-related uranium mineralisation. One
such low, in the south of the project, has been identified to be
'up ice' (upstream of the ice-age glacial flow direction) and
therefore a potential source of elevated U-in-lake sediments
identified from a work programme completed in the 1970s.
More recent work (2011-2021) conducted by Purepoint Uranium
Group Inc highlighted a cluster of anomalous U-in soil geochemical
results (up to 33 ppm U) located in the central part of the
project, coincident with multiple known structural features. The
elevated U-in soil results are associated with elevated vanadium,
lead, and cobalt results - elements which are known to be
associated with unconformity-related uranium mineralisation.
In addition, the elevated soil results are in close proximity
(<400 m) to coincident elevated Radon(222) isotope and
Thorium-in-soil results - both of which are daughter products of
the decay of uranium and are important tracers in and around the
Athabasca Basin.
The secondary gravity low to the north of the project remains
untested, with minimal exploration occurring elsewhere.
Figure 1: Perch River Uranium Project Overview Map.
URANIUM PROPERTIES - HOLDING STRUCTURE
Power Metal has a 100% subsidiary Power Metal Canada Inc ("Power
Canada"), which acts as the holding company for certain Canadian
project operations. Power Canada has a wholly owned subsidiary,
102134984 Saskatchewan Ltd, which is the holder of the Company's
Athabasca uranium portfolio.
Table 1: 102134984 Saskatchewan Ltd., Saskatchewan Holdings*
Project Licence ID Area Area
(Hectare) (km(2) )
Clearwater Uranium
Project MC00015079 1,110 11.1
------------ ----------- -------------
MC00015083 563 5.63
-------------------------------------- ----------- -------------
MC00015082 3,191 31.91
-------------------------------------- ----------- -------------
MC00015151 760 7.6
-------------------------------------- ----------- -------------
MC00015646 761 7.61
-------------------------------------- ----------- -------------
MC00015658 1,541 15.41
-------------------------------------- ----------- -------------
Tait Hill Uranium
Project MC00015078 1,576 15.76
------------ ----------- -------------
MC00015081 968 9.68
-------------------------------------- ----------- -------------
MC00015153 1,530 15.3
-------------------------------------- ----------- -------------
MC00015152 1,886 18.86
-------------------------------------- ----------- -------------
MC00015647 725 7.25
-------------------------------------- ----------- -------------
MC00015648 1,129 11.29
-------------------------------------- ----------- -------------
MC00016158 3,242 32.42
-------------------------------------- ----------- -------------
Thibault Lake Uranium
Project MC00015077 2,206 22.06
------------ ----------- -------------
MC00015659 2,195 21.95
-------------------------------------- ----------- -------------
AC00018709 1,982 19.82
-------------------------------------- ----------- -------------
Soaring Bay Uranium
Project MC00015080 1,255 12.55
------------ ----------- -------------
MC00015155 3,375 33.75
-------------------------------------- ----------- -------------
MC00015874 748 7.48
-------------------------------------- ----------- -------------
MC00015875 2,529 25.29
-------------------------------------- ----------- -------------
Cook Lake Uranium
Project MC00015212 984 9.84
------------ ----------- -------------
E-12 Uranium Project(1) MC00015213 1,323 13.23
------------ ----------- -------------
Reitenbach Uranium
Project(2) MC00015214 2,135 21.35
------------ ----------- -------------
MC00015474 1,235 12.35
-------------------------------------- ----------- -------------
MC00015655 4,570 45.7
-------------------------------------- ----------- -------------
MC00015656 5,322 53.22
-------------------------------------- ----------- -------------
MC00015657 886 8.86
-------------------------------------- ----------- -------------
MC00015824 528 5.28
-------------------------------------- ----------- -------------
MC00016155 1,333 13.33
-------------------------------------- ----------- -------------
Reindeer Lake MC00015522 3,336 33.36
------------ ----------- -------------
Porter Lake MC00015561 5,657 56.56
------------ ----------- -------------
MC00015562 5,199 51.98
-------------------------------------- ----------- -------------
Old Woman Rapids MC00015563 4,851 48.51
------------ ----------- -------------
MC00015564 5,063 50.63
-------------------------------------- ----------- -------------
MC00015565 3,044 30.44
-------------------------------------- ----------- -------------
Durrant Lake MC00016142 5,866 58.66
------------ ----------- -------------
Badger Lake MC00016253 1,671 16.71
------------ ----------- -------------
Haresign Bay MC00016910 100* 1.00*
------------ ----------- -------------
MC00016911 33* 0.33*
-------------------------------------- ----------- -------------
MC00016912 33* 0.33*
-------------------------------------- ----------- -------------
Kernaghan MC00016760 4,566 45.66
------------ ----------- -------------
Hawkrock East MC00016968 2,345 23.45
------------ ----------- -------------
Hawkrock West MC00016967 3,220 32.20
------------ ----------- -------------
Perch River MC00017294 3,941 39.41
------------ ----------- -------------
Total Licence Holding Area 100,514 1,005.14km(2)
----------- -------------
NOTES AND REFERENCES
1: The E-12 Property, currently included as one of the 17
uranium portfolio properties, is subject to a conditional disposal
to Teathers Financial PLC for a consideration of GBP250,000. Work
is ongoing to complete that transaction. See Company announcement
released on 4 November 2022.
(
https://www.londonstockexchange.com/news-article/POW/disposal-of-e-12-uranium-property-canada/15703304
)
2: The Reitenbach Property, currently included as one of the 17
uranium portfolio properties, is subject to a conditional disposal
to Teathers Financial PLC for a consideration of GBP360,000. Work
is ongoing to complete that transaction. See Company announcement
released on 8 August 2022.
(
https://www.londonstockexchange.com/news-article/POW/disposal-of-reitenbach-uranium-property-canada/15575269
)
3: ( https://www.londonstockexchange.com/news-article/POW/athabasca-uranium-exploration-update/15742013 )
QUALIFIED PERSON STATEMENT
The technical information contained in this disclosure has been
read and approved by Mr Nick O'Reilly (MSc, DIC, MIMMM, MAusIMM,
FGS), who is a qualified geologist and acts as the Qualified Person
under the AIM Rules - Note for Mining and Oil & Gas Companies.
Mr O'Reilly is a Principal consultant working for Mining Analyst
Consulting Ltd which has been retained by Power Metal Resources PLC
to provide technical support.
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
For further information please visit
https://www.powermetalresources.com/ or contact:
Power Metal Resources plc
Sean Wade (Chief Executive Officer) +44 (0) 20 3778 1396
SP Angel Corporate Finance (Nomad and Joint Broker)
Ewan Leggat/Charlie Bouverat +44 (0) 20 3470 0470
SI Capital Limited (Joint Broker)
Nick Emerson +44 (0) 1483 413 500
First Equity Limited (Joint Broker)
David Cockbill/Jason Robertson +44 (0) 20 7330 1883
BlytheRay (PR Advisors) +44 (0) 20 7138 3204
Tim Blythe
Megan Ray
NOTES TO EDITORS
Power Metal Resources plc - Background
Power Metal Resources plc (LON:POW) is an AIM listed metals
exploration company which finances and manages global resource
projects.
The Company has a principal focus on opportunities offering
district scale potential across a global portfolio including
precious, base and strategic metal exploration in North America,
Africa and Australia.
Project interests range from early-stage greenfield exploration
to later-stage prospects currently subject to drill programmes.
Power Metal will develop projects internally or through
strategic joint ventures until a project becomes ready for disposal
through outright sale or separate listing on a recognised stock
exchange, thereby crystallising the value generated from our
internal exploration and development work.
Value generated through disposals will be deployed internally to
grow the Company, or may be returned to shareholders through share
buy backs, dividends or in-specie distributions of assets.
This information is provided by RNS, the news service of the
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END
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